2010 Sustainable Development Report EXECUTIVE ... - Cemex
2010 Sustainable Development Report EXECUTIVE ... - Cemex
2010 Sustainable Development Report EXECUTIVE ... - Cemex
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uilding a<br />
better future<br />
<strong>2010</strong> sustainable development report<br />
<strong>EXECUTIVE</strong> sUmmary
tAblE Of COntEntS<br />
1 About CeMeX<br />
2 MessAge froM our ChAirMAn And Ceo<br />
4 PerforMAnCe suMMAry<br />
6 sustAinAbility Vision And Model<br />
8 sustAinAbility Priorities And Progress<br />
8 leAd in sustAinAble ConstruCtion<br />
9 low-inCoMe housing And infrAstruCture<br />
10 enhAnCe our CArbon strAtegy<br />
11 eXCellenCe in enVironMentAl And<br />
biodiVersity MAnAgeMent<br />
12 high Priority to heAlth And sAfety<br />
14 strengthen loCAl CoMMunities<br />
16 PArtnershiP with Key stAKeholders<br />
18 resPonsibility for sustAinAbility At CeMeX<br />
19 AwArds And reCognitions<br />
COnnECt:<br />
www.facebook.com/cemex<br />
www.twitter.com/cemex<br />
www.flickr.com/cemex<br />
www.youtube.com/cemex<br />
www.cemex.com/sustainability<br />
sd@cemex.com<br />
OUR COVER<br />
Our cover shows the project “El Acantilado – Hábitat<br />
Ecológico”, a CEMEX Building Awards sustainable<br />
construction project. Photo: Pedro Truyol<br />
GRI A+ SCORE<br />
We applied the Global <strong>Report</strong>ing Initiative (GRI) G3<br />
Sustainability <strong>Report</strong>ing Guidelines to produce our full<br />
report, which meets an application level of A+ for the third<br />
consecutive year. We provide a GRI index and an index of<br />
United Nations Global Compact disclosures on our website<br />
at www.cemex.com/sustainability<br />
about<br />
CEMEX<br />
We help our customers solve their building<br />
challenges<br />
CEMEX is a global building materials company that provides products<br />
of consistently high quality and reliable service to customers<br />
and communities across the world.<br />
We advance the well-being of those we serve through our relentless<br />
focus on continuous improvement and our efforts to promote a<br />
sustainable future.<br />
Our company was founded in Mexico in 1906, and we have grown<br />
from a local player to one of the top global companies in our industry,<br />
with close to 46,500 employees worldwide. Today we are strategically<br />
positioned in the Americas, Europe, Africa, the Middle East, and<br />
Asia. Our operations network produces, distributes, and markets cement,<br />
ready-mix concrete, aggregates, and related building materials<br />
to customers in over 50 countries, and we maintain trade relationships<br />
in approximately 100 nations.
Quick Facts (as of December 31, <strong>2010</strong>)<br />
n CEMEX, S.A.B. de C.V., (NysE: CX / BmV: CEmEX), a holding company, is a public stock corporation with variable capital (S.A.B. de C.V.)<br />
organized under the laws of the United Mexican States (Mexico)<br />
n Founded in mexico in 1906<br />
n World’s leading supplier of ready-mix concrete, a leading cement and aggregates producer, one of the world’s largest producers<br />
of White Portland Cement, and one of the top cement and clinker traders in the world.<br />
n Presence in more than 50 countries and trade relationships in approximately 100 nations<br />
n Close to 46,500 employees worldwide<br />
n Annual production capacity of 96 million metric tons of cement<br />
n Annual production levels of approximately 51 million cubic meters of ready-mix concrete and more than<br />
158 million metric tons of aggregates<br />
n 62 cement plants, close to 2,000 ready-mix concrete facilities, and a minority participation in 12 cement plants<br />
n 376 aggregate quarries, 223 land-distribution centers, and 71 marine terminals<br />
n Our customers range from global construction firms to individuals building their homes<br />
SaleS dIStRIbutIOn by PROduCt<br />
percentage<br />
34<br />
14<br />
3<br />
Mexico: 29.3<br />
48<br />
l CEMENT<br />
l READY-MIX<br />
CONCRETE<br />
l AGGREGATES<br />
l OTHERS<br />
<strong>2010</strong> Global Operations<br />
Cement Production Capacity (million metric tons/year)<br />
South / Central<br />
America and<br />
Caribbean: 12.8<br />
11<br />
USA: 17.2<br />
SaleS GeOGRaPHIC dIStRIbutIOn<br />
percentage<br />
35<br />
8<br />
4<br />
Europe: 25.7<br />
25<br />
18<br />
TOTAL: 96.1<br />
l MEXICO<br />
l UNITED STATES<br />
l EUROPE<br />
l SOUTH/ CENTRAL<br />
AMERICA AND<br />
CARIBBEAN<br />
l AFRICA AND<br />
MIDDLE EAST<br />
l ASIA<br />
9<br />
Africa and<br />
Middle East: 5.4<br />
WORKFORCe GeOGRaPHIC dIStRIbutIOn<br />
percentage<br />
8<br />
32<br />
7<br />
25<br />
19<br />
Asia: 5.7<br />
l MEXICO<br />
l UNITED STATES<br />
l EUROPE<br />
l SOUTH/ CENTRAL<br />
AMERICA AND<br />
CARIBBEAN<br />
l AFRICA, MIDDLE<br />
EAST AND ASIA<br />
l CENTRAL<br />
1<br />
—
2<br />
—<br />
MESSAGE from<br />
our chairman<br />
and CEO<br />
“Sustainability is central to<br />
our business strategy and<br />
key to our future growth.”<br />
tO OuR StaKeHOldeRS:<br />
For CEMEX, <strong>2010</strong> was a transitional year, as the global building materials<br />
sector continued an uneven recovery from the great recession. We<br />
strengthened both our business model and our balance sheet, positioning<br />
our company for long-term profitable growth. At the same<br />
time, we intensified our commitment to integrating sustainability into<br />
all aspects of our world-wide business.<br />
Sustainability is central to our business strategy and one of the keys<br />
to our future growth. As the largest concrete producer in the world,<br />
we have both a responsibility and a great opportunity to help lead<br />
the transition to a truly sustainable construction industry. That, in<br />
turn, would be a critical element of a low carbon economy.<br />
The challenges of building the sustainable housing and infrastructure<br />
required by a growing global population are immense. Society needs<br />
innovations not only in design, materials, and construction processes,<br />
but also in creating access to green housing and infrastructure, especially<br />
for those who are in most need. CEMEX is committed to helping<br />
stimulate those innovations, while improving the sustainability of our<br />
own operations and increasing our social investment.<br />
I am pleased to report that we made progress on all those fronts<br />
last year.<br />
For example, although concrete is the most inherently sustainable<br />
building material, we intensified our work to improve its characteristics.<br />
This included developing concretes that improve structural<br />
strength, provide extra insulation or allow water to filter through.<br />
We also introduced a carbon footprint tool- the first of its kind in the<br />
building materials industry- that allows us to measure the greenhouse<br />
gas emissions of our cement, ready-mix, and aggregates products. The<br />
tool has already been implemented in all of CEMEX’s operating cement<br />
plants, and is now being extended across our ready-mix and aggregates<br />
operations worldwide. As a result, we will begin to roll out carbon<br />
content information for our products during 2011.<br />
We significantly increased the use of lower-carbon alternative fuels<br />
in our kilns. In <strong>2010</strong> our alternative-fuel use rose to 20.3 percent of<br />
our total fuel mix, almost doubling from the 10.3 percent recorded<br />
in 2008. Partly as a result, we are on course to avoid 25 percent of<br />
specific net CO2 emissions related to manufacture of cementitious<br />
products by 2015 compared to our 1990 baseline.<br />
CEMEX has a longstanding and well-documented commitment<br />
to biodiversity and wilderness preservation. In concert with this<br />
tradition, last year we and our partners at BirdLife International<br />
completed a multi-year scoping study on the biodiversity status<br />
of our worldwide cement and aggregates operations. We assessed<br />
543 sites and identified 131 sites that overlap with areas of high<br />
biodiversity value. We are using this study to develop biodiversity<br />
action plans.
During <strong>2010</strong>, we continued our initiatives to build affordable housing<br />
and infrastructure in developing markets. Last year alone, more than<br />
45,000 families were able to improve their homes through our Patrimonio<br />
Hoy program, bringing the total to more than 300,000 since we<br />
started the program in 1998. The World Business and <strong>Development</strong><br />
Awards organized by the United Nations <strong>Development</strong> Program, the<br />
International Chamber of Commerce, and the International Business<br />
Leader Fund, recognized our contributions towards achieving the Millennium<br />
<strong>Development</strong> Goals through programs such as Centros Productivos<br />
de Autoempleo, which we expanded to Colombia in <strong>2010</strong>.<br />
Last year witnessed a number of extreme weather events and natural<br />
disasters that severely affected countries and communities where<br />
CEMEX operates. In response, we intensified our disaster relief efforts,<br />
providing emergency humanitarian aid and supporting long-term<br />
reconstruction efforts.<br />
After the <strong>2010</strong> Haiti earthquake, CEMEX raised US$750,000 in company<br />
and employee contributions, with donations from more than<br />
2,500 employees in 29 countries, to help support both emergency<br />
relief and reconstruction efforts. Additionally, we provided direct<br />
assistance in Haiti itself. After June’s catastrophic flooding in Central<br />
Europe, CEMEX focused on Poland and northeastern Hungary, where<br />
the damage was greatest. We provided machinery to help drain<br />
the water and clear roads, and donated construction materials to<br />
reinforce flood banks. In Northern Mexico, Hurricane Alex produced<br />
record-breaking rainfall during early July, creating widespread flooding<br />
and leaving thousands homeless or without access to water or<br />
electricity. CEMEX and our employees responded with significant<br />
donations of time, money and equipment as part of the cleanup,<br />
relief and reconstruction efforts.<br />
An integral part of our sustainability commitment is our continuing,<br />
company-wide effort to improve workplace and community safety.<br />
The safety and well-being of our employees, contractors, and other<br />
third parties involved in our operations is paramount. While we<br />
made significant progress in many health and safety-related areas<br />
last year, we are profoundly sorry to report that in <strong>2010</strong> there were<br />
46 employee, contractor and third-party fatalities related to our<br />
operations. This is unacceptable to us: we refuse to accept even one<br />
such tragedy as inevitable.<br />
Zero tolerance for accidents requires constant innovation. In this spirit,<br />
we have continued to roll out the LEGACY training program globally.<br />
In 2011 we will launch new health and safety policies, implement our<br />
new Health and Safety Management System, and require greater accountability<br />
for safety performance from all our managers.<br />
At CEMEX, we know that sustainability is a fundamental—and<br />
urgent—requirement of planetary survival, and we are deeply<br />
committed to pursuing an aggressive sustainability agenda in our<br />
industry, in our communities and in the countries where we operate.<br />
Lorenzo H. Zambrano<br />
Chairman of the Board and Chief Executive Officer<br />
We have continued to work with a broad range of stakeholders—<br />
including customers, suppliers, employees, shareholders, neighboring<br />
communities, NGOs, universities and governments—to develop<br />
and promote best practices, innovative research and positive policy<br />
solutions.<br />
For example, at the <strong>2010</strong> World Economic Forum in Latin America, we<br />
proposed a new model for urban development and urged new alliances<br />
among key stakeholders to finance housing projects. And, at the<br />
end of the year, CEMEX was an official sponsor of the COP 16 meeting<br />
in Cancun, Mexico, contributing to the global climate change debate<br />
with initiatives that highlighted how existing building and energy<br />
technologies can help the transition to a low carbon world.<br />
Every CEMEX employee recognizes that sustainability requires constant<br />
effort, innovation and commitment both as individuals and as<br />
a company. We are grateful for the input of the <strong>Sustainable</strong> <strong>Development</strong><br />
<strong>Report</strong>ing Advisory Panel in our ongoing effort to report<br />
more transparently on our challenges as well as our successes. Their<br />
guidance is invaluable to this process. At the same time, we invite<br />
feedback from all of our stakeholders and look forward to continually<br />
improving our performance in the coming years.<br />
Sincerely,<br />
Lorenzo H. Zambrano<br />
Chairman of the Board and Chief Executive Officer<br />
3<br />
—
4<br />
—<br />
PERFORMANCE<br />
summary<br />
The following tables provide an overview of our performance indicators and progress toward our companywide sustainability targets. We are<br />
committed to improving our performance in all areas and will continue to disclose our achievements and challenges. Unless otherwise specified,<br />
the information provided is for the company as a whole. The full list of indicators, broken down by business segments where available, can<br />
be found in the Performance in Detail section of the full version of our <strong>2010</strong> <strong>Sustainable</strong> <strong>Development</strong> <strong>Report</strong> available for download in our<br />
corporate website.<br />
This year we have added indicators corresponding to our objective to Enhance our Value creation, specifically in our priority to Lead in <strong>Sustainable</strong><br />
Construction and focusing on our new CO2 Footprint tool.<br />
The indicators marked with were subject to an external limited assurance process by PwC. The assurance statement detailing the review<br />
work and conclusions can also be found on the full version of our <strong>2010</strong> <strong>Sustainable</strong> <strong>Development</strong> <strong>Report</strong>.<br />
Enhance our value creation 2008 2009 <strong>2010</strong><br />
lead in <strong>Sustainable</strong> Construction<br />
Production covered with the Co2 footprint tool (%) (1) -- -- 58 100<br />
Targets<br />
2015 Progress Assurance<br />
Cement -- -- 100 100 l<br />
Aggregates -- -- 50 100<br />
Ready-mix concrete -- -- 32 100<br />
Co2 footprint - Annual average<br />
Cement (Kg CO2e per ton cement) -- -- 798<br />
Aggregates (Kg CO2e per ton aggregates products) -- -- 5.3<br />
Ready-mix (Kg CO2e per m 3 ) -- -- 298<br />
Targets<br />
Manage our footprint 2008 2009 <strong>2010</strong> 2015 Progress Assurance<br />
Enhance our Carbon Strategy<br />
Absolute net CO2 emissions (million metric tons) (2) 48.2 39.7 41.0<br />
Specific net CO2 emissions (kg CO2/metric ton of cementitious product) (2) 654 627 629 602<br />
Reduction in CO2 emissions per ton of cementitious product from 1990<br />
baseline (%)<br />
17.4 20.7 20.5 25<br />
Thermal energy efficiency of clinker production (MJ/ton clinker) (2) 3,741 3,693 3,696<br />
Alternative fuels rate (%) (2) 10.3 16.4 20.3 35 (5)<br />
Alternative fossil fuels rate (%) 8.6 13.2 15.7<br />
Biomass fuels rate (%) 1.7 3.2 4.6<br />
Alternative raw material rate (%) (2) 12.0 12.2 11.8 12<br />
Clinker / cement factor (%) (2) 75.4 75.2 75.9<br />
l We have achieved our target We are currently on track to achieve our target l Extra effort required to achieve target
Excellence in Environmental and biodiversity Management<br />
Clinker produced with continuous monitoring of major emissions:<br />
Dust, NOx and SOx (%) (2)<br />
2008 2009 <strong>2010</strong><br />
44 60 74 100<br />
Targets<br />
2015 Progress Assurance<br />
Specific Dust emissions (g/ton clinker) (2) 162 106 89 155 (6) l<br />
Specific NOx emissions (g/ton clinker) (2) 1,742 1,063 1,134 1,667 (6) l<br />
Specific SOx emissions (g/ton clinker) (2) 484 410 334 519 (6) l<br />
Active sites with quarry rehabilitation plans (%) 46 82 85 100<br />
Active quarries within or adjacent to high biodiversity value areas (#) NA 112 105<br />
Active sites with high biodiversity value where biodiversity plans are implemented<br />
(%)<br />
NA 29 38 100<br />
Operations with water recycling systems (%) (3) 82 76 85<br />
Environmental investment (US million) (4) $62 $77 $93<br />
Major environmental incidents (#) 19 8 2<br />
Environmental non-compliance cases (#) 67 67 65<br />
Associated fines (US million) 4.1 1.3 1.4<br />
Operations with an Environmental Management System implemented (%) (3) 30 50 76<br />
Targets<br />
Engage our stakeholders 2008 2009 <strong>2010</strong> 2015 Progress Assurance<br />
High priority to Health & Safety<br />
Total fatalities, employees, contractors, and third parties (#) 45 33 46 l<br />
Fatality rate, employees (per 10,000 employees) 1.16 1.56 0.43<br />
Lost-Time Injuries (LTI), employees (#) 654 360 268<br />
Lost-Time Injuries (LTI), contractors (#) 165 154 123<br />
Lost-Time Injury (LTI) frequency rate, employees (per million hours worked) 4.8 3.2 2.6 0.5 (7)<br />
Sickness Absence Rate per employee (%) (8) – 5.2 2.5<br />
% Compliance with CSI Driving Safety Recommended Practices (9) – – 64 100<br />
% Compliance with CSI Contractor Safety Recommended Practices (9) – – 63 100<br />
Operations with a Safety Management System implemented (%) (10) 80 98 98<br />
Operations with a Health Management System implemented (%) (10) 52 76 79<br />
Strengthen local Communities<br />
Sites with community engagement plans (%) 88 85 97<br />
Families participating in Patrimonio Hoy in Latin America (# accumulated) (3) 223,745 263,212 308,311<br />
Mexico (3) 218,637 251,828 294,173<br />
Other Latin American Countries (3) 5,108 11,384 14,138<br />
(1) The CO2 Footprint tool was implemented in <strong>2010</strong>. All figures are based on 2009 volumes. In October <strong>2010</strong>, DNV performed the certification of our carbon footprint calculation methodology based<br />
on data from 2009. CEMEX has established a target of 100% implementation by the end of 2011.<br />
(2) Only cement operations<br />
(3) Historic figures recalculated due to an improvement in measurement, as well as changes in the consolidation perimeter (increase in the number of sites reporting)<br />
(4) Include environmental, alternative fuels and cementitious material investments<br />
(5) Target and year of compliance updated from 2020 to 2015, given 15% was achieved in 2009.<br />
(6) As emission targets for 2015 have been already met, CEMEX is undergoing a thorough analysis of its operations and market developments to set new, challenging targets for 2015.<br />
(7) A new target of 0.5 has been established to ensure we continue to work towards our ultimate goal of zero LTIs.<br />
(8) We believe that the previous Health Indicator for “% employees participating in annual medical exams” was difficult to progress globally given the difficulty in some countries to legally conduct<br />
these exams for workers. A new indicator showing our employee sickness absence rate is universally tracked and was agreed to be a more relevant indicator to measure our progress in health.<br />
(9) Having achieved close to 100% of the previous target “% of operations with safety training programs for drivers”, new KPIs to track our progress in complying with the CSI Driving and Contractor<br />
standards were introduced.<br />
(10) In <strong>2010</strong>, the separate Health and Safety Management Systems were combined to create a single HSMS, hence a new KPI tracking implementation progress of this new system was introduced.<br />
NA = Data not available<br />
5<br />
—
6<br />
—<br />
sustainability<br />
viSiON and model<br />
CEMEX’s sustainability model<br />
We have three main sustainability objectives:<br />
Enhance Our value Creation: CEMEX aims to<br />
deliver the innovative, high-performing<br />
products, services, and solutions that<br />
our resource-constrained society<br />
requires in order to create a growing<br />
and profitable low-carbon economy.<br />
By fulfilling the needs of the construction<br />
sector in its efforts to adopt more<br />
sustainable operating practices, we<br />
aim to create long-lasting competitive<br />
advantages.<br />
SUSTAINABILITY<br />
AT CEMEX<br />
ENHANCE OUR MANAGE OUR<br />
VALUE CREATION FOOTPRINT<br />
ENGAGE OUR<br />
STAKEHOLDERS<br />
Envisioning a sustainable future<br />
As a leading company in the<br />
global building materials<br />
industry, CEMEX is positioned<br />
at the convergence of great<br />
environmental and social<br />
challenges.<br />
given the importance of the sustainability-related challenges<br />
that society is facing, CeMeX has integrated sustainability into its<br />
business strategy. with the help of our sustainability Model, we<br />
are incorporating sustainability practices into all of our day-today<br />
operations and decision-making processes worldwide. our<br />
model ensures that we concentrate our efforts and resources<br />
on the issues of highest relevance to our business and greatest<br />
concern to our stakeholders.<br />
Manage Our Footprint: CEMEX strives to minimize<br />
the ecological impacts of its operations on the<br />
communities in which it operates. Such impacts<br />
are carefully identified and measured so that we<br />
can continuously reduce our footprint to the<br />
lowest level that is both technically and economically<br />
feasible. We also have a robust pipeline of<br />
projects that provide carbon offsets to further<br />
reduce our net impact.<br />
Engage Our Stakeholders: CEMEX fosters positive,<br />
long-term relationships with key stakeholders<br />
to address the pressing needs and concerns of<br />
society. With a highly committed and empowered<br />
employee base, CEMEX closely collaborates with<br />
a broad variety of institutions that allow us to<br />
complement our core competences and enable<br />
us to generate social benefits that contribute to<br />
strengthening local communities.
CEMEX’s sustainability priorities<br />
We have identified seven priorities in our Sustainability Model. The<br />
definition of these priorities has followed a structured process of<br />
both internal and external consultations where we have measured<br />
the impact that the main sustainability issues have on our stakeholders<br />
and on CEMEX operations. For this matter, we have performed a<br />
Materiality Analysis which is furthermore explained in our About this<br />
<strong>Report</strong> section.<br />
Our seven priorities aligned to each of our three objectives are the<br />
focus of our <strong>2010</strong> <strong>Sustainable</strong> <strong>Development</strong> <strong>Report</strong>:<br />
CEMEX’s key stakeholders<br />
By building strong, long-term relationships with our key stakeholders, we<br />
increase our responsiveness to their needs and concerns, find new ways<br />
to reduce our impacts, contribute to sustainable development worldwide,<br />
and make CEMEX a more competitive and profitable enterprise.<br />
Enhance our Value Creation:<br />
n Lead in <strong>Sustainable</strong> Construction<br />
n Low-Income Housing & Infrastructure<br />
Manage our footprint:<br />
n Enhance Our Carbon Strategy<br />
n Excellence in Environmental & Biodiversity Management<br />
Engage our Stakeholders:<br />
n High Priority to Health & Safety<br />
n Strengthen Local Communities<br />
n Partnership with Key Stakeholders<br />
Our People<br />
We aim to be the employer of choice in our markets. We seek to provide<br />
the most attractive opportunities for employees’ personal and<br />
professional development.<br />
Our neighbors<br />
We are a good neighbor. We participate with communities openly<br />
and directly in order to build trust and address their concerns.<br />
Our business Partners<br />
We work to be the business partner of choice. We seek to help our<br />
suppliers and customers build their businesses and to create enduring<br />
value for our shareholders.<br />
Our World<br />
We are a good global citizen. As a global company, we work to contribute<br />
to international efforts to address some of the world’s most<br />
complex challenges, including climate change, access to housing<br />
and community infrastructure, and the conservation of biodiversity.<br />
7<br />
—
8<br />
—<br />
LEAD in sustainable<br />
construction<br />
in <strong>2010</strong>, we introduced the first carbon footprint<br />
tool in the industry<br />
58%<br />
of our total worldwide<br />
production has implemented<br />
the tool<br />
As the largest producer of concrete in the world, CEMEX sees an enormous<br />
opportunity in the future of the global construction industry.<br />
However, along with this opportunity, comes a corresponding responsibility.<br />
CEMEX is rising to the challenge with a three-part strategy to:<br />
n develop better building products and solutions<br />
n support the design and renovation of buildings<br />
n promote and enable sustainable urban planning<br />
develOPInG betteR buIldInG PROduCtS and SOlutIOnS<br />
Led by our Global Center for Technology and Innovation in Switzerland,<br />
CEMEX technology centers around the world are creating a range<br />
of innovative concrete products to meet the construction industry’s<br />
growing demand for high-performance, low-carbon building solutions.<br />
Some of our most relevant offerings are: self-compacting concrete,<br />
insulating concrete forms, impervious concrete (Impercem®), highstrength<br />
concrete, specially designed high-performance concrete, permeable<br />
concrete, structural insulation concrete, and low CO2 footprintself<br />
compacting and easy compacting concrete, among others.<br />
SuPPORtInG tHe deSIGn and RenOvatIOn OF buIldInGS<br />
Given the challenge to develop not only sustainable building materials,<br />
but also more sustainable buildings, we have taken a leadership<br />
role in several partnerships and policy organizations focused on<br />
sustainable building and development, including:<br />
n The World Business Council for <strong>Sustainable</strong> <strong>Development</strong>’s<br />
(WBCSD) Energy Efficiency in Buildings initiative to set new standards<br />
for the use of energy in buildings<br />
n The establishment of the Concrete Sustainability Hub at the Massachusetts<br />
Institute of Technology that conducts research to examine<br />
and quantify benefits and savings from better use of concrete in<br />
buildings and pavements from a total life cycle cost perspective<br />
n Our partnership with the World Green Building Council to further<br />
promote the mainstreaming of sustainable construction practices<br />
through the conference “Key Challenges for Construction in the<br />
21st Century” during the <strong>2010</strong> COP16 meeting in Cancun, Mexico<br />
PROmOtInG SuStaInable uRban PlannInG PRaCtICeS<br />
<strong>Sustainable</strong> development, especially the planning and development<br />
of more sustainable cities, may present the greatest challenge of the<br />
21st century—one that will only be met if multiple stakeholders work<br />
together. With this in mind, we have taken the first steps towards this<br />
collaboration by participating as co-chair in the Urban Infrastructure<br />
Initiative created by the WBCSD. Additionally, during COP16, CEMEX<br />
presented “a vision of the city of the future.” Our exhibit showcased<br />
how concrete’s properties make it an ideal material for building<br />
sustainable cities, including infrastructure for clean energy sources,<br />
transportation infrastructure, energy efficient buildings, sustainable<br />
urban design and infrastructure, and industrial ecology systems.<br />
www.cemex.com/<strong>Sustainable</strong><strong>Development</strong>/CityOfTheFuture.aspx<br />
Established in 1991, the CEMEX Building Awards recognize outstanding<br />
construction projects and the talented individuals who<br />
contribute to their creation. The <strong>2010</strong> first-place winners in the<br />
sustainable construction category were the Split University Library<br />
in Croatia and the Ecological Interpretive Center in “El Cielo”<br />
Biosphere Reserve in Mexico. www.cemexbuildingaward.com<br />
new CO2 footprint tool measures the greenhouse gas<br />
emissions of our building materials<br />
In <strong>2010</strong>, CEMEX introduced a carbon footprint tool, the first of its kind<br />
in the building materials industry. The tool measures emissions from<br />
“cradle-to-gate”—from raw material sourcing to the release of the<br />
finished product at the factory gate—which allows CEMEX to track the<br />
greenhouse gas emissions of all of its cement, ready-mix concrete, and<br />
aggregates products. We developed the carbon footprint methodology<br />
to help our customers calculate the footprint of their projects, perform<br />
a benchmark of company facilities, and collaborate with our clients in<br />
the selection of materials. CEMEX has implemented the carbon footprint<br />
tool at 629 sites worldwide, representing 58% of our company’s production<br />
(1) . CEMEX’s footprint tool has already been implemented in all of<br />
our operating cement plants, and is currently being rolled out across our<br />
ready-mix and aggregates operations worldwide.<br />
CemeX’S InItIal GReenHOuSe GaS emISSIOnS FOOtPRInt (1)<br />
n raw materials n energy, fuel & others n transportation n direct emissions<br />
euROPe 714<br />
809<br />
ameRICaS<br />
881<br />
aSIa / me<br />
261<br />
euROPe<br />
329<br />
ameRICaS<br />
323<br />
aSIa / me<br />
3.5<br />
euROPe<br />
5.8<br />
ameRICaS<br />
8.0<br />
aSIa / me<br />
Cement Ready-mIX aGGReGateS<br />
Kg CO2e/ton Kg CO2e/m 3 Kg CO2e/ton<br />
(1) Calculated CO2e for<br />
CEMEX operations,<br />
based on sites already<br />
implemented, using<br />
2009 data.<br />
In addition to the DNV<br />
certification standards,<br />
we considered the stilldeveloping<br />
requirements<br />
of the draft versions of<br />
ISO 14067 and the WBC-<br />
SD/WRI GHG protocol<br />
“Product Life Cycle Accounting<br />
and <strong>Report</strong>ing<br />
Standard” Review Draft<br />
for Stakeholder Advisory<br />
Group November 2009.
HelPInG tO elImInate HOuSInG deFICIt<br />
CEMEX’s housing strategy is designed to address the significant<br />
housing deficits in developing countries and demolish paradigms<br />
that limit the affordability of home ownership for low-income families<br />
by establishing cooperative relationships with key stakeholders:<br />
n Working with communities: Through microfinance, training,<br />
equipment, technology, and expertise, CEMEX enables lowincome<br />
individuals to build homes, businesses, and stronger<br />
communities.<br />
n Working with developers: Working hand-in-hand with private developers,<br />
CEMEX brings needed resources, technology, and knowhow<br />
to the development of low-incoming housing. In Mexico, the<br />
CEMEX Vivienda initiative supported developers in building 1,502<br />
houses in <strong>2010</strong>—170% more than in 2009.<br />
n Attracting private investment: By orchestrating joint efforts between<br />
financial institutions, governments, NGOs, developers, and<br />
communities, CEMEX develops significant housing projects that<br />
provide a step towards homeownership and a decent standard of<br />
living for low-income people.<br />
We support social and economic progress, especially in the developing<br />
countries where we operate by helping to build affordable housing<br />
and better, more modern, and durable community infrastructure.<br />
Developing prototypes for affordable housing<br />
CEMEX housing experts have developed the San<br />
Marcos prototype—consisting of a living room, two<br />
bedrooms, kitchen, and bathroom—which offers 35<br />
square meters of living space expandable up to 84<br />
square meters. Designs based on precast concrete<br />
forms make the structures sound, fast, and economical<br />
to build. The use of special products such as our sealing<br />
and water proofing Impercem® and Hidratium® and<br />
our antibacterial concrete add to the soundness and<br />
safety of these structures. During autumn <strong>2010</strong>, the San<br />
Marcos prototype was tested as part of the Nuevo Leon<br />
Reconstruction Program for victims of Hurricane Alex.<br />
San Marcos prototype: 35m 2 basic housing unit<br />
low-income HOUSiNG<br />
and iNFRASTRUCTURE<br />
10<br />
+1,500<br />
million square meters of urban<br />
and highway concrete paving<br />
completed in Mexico in <strong>2010</strong><br />
houses built in Mexico with<br />
support of CEMEX Vivienda<br />
PaRtneRInG tO maKe HIGH-SCale InFRaStRuCtuRe a RealIty<br />
CEMEX works with governments to identify, coordinate, and develop<br />
infrastructure projects. In addition to our building materials, technical<br />
expertise, and equipment, we also bring turnkey solutions to<br />
high-scale infrastructure projects. Our involvement spans the entire<br />
life cycle: from originating new projects and helping to secure and<br />
structure financing through third-parties to executing and managing<br />
construction—and, in some cases, maintenance and toll road<br />
operation. Ultimately, we provide greater value for our public and<br />
private sector clients—offering the cost-effective, comprehensive<br />
solutions they need—while creating a competitive advantage and<br />
generating new market opportunities for CEMEX. In Mexico, we supported<br />
the completion of 7 million square meters of urban concrete<br />
paving and over 3 million square meters of highway concrete paving<br />
in <strong>2010</strong>. Over the past 15 years, we have participated in 70 concrete<br />
road-building projects that have created 10,000 lane-kilometers of<br />
pavement surface for highways alone.<br />
Rebuilding infrastructure in tijuana, Mexico<br />
CEMEX was a moving force in the recently completed<br />
Comprehensive Road Rehabilitation Project or PIRE (Programa<br />
Integral de Repavimentación) in Tijuana, Mexico, to<br />
rehabilitate and upgrade some 126 kilometers of the city’s<br />
urban roadways. The use of concrete rather than asphalt in<br />
the project provided a more sustainable solution, as concrete<br />
allows for greater durability, safety, and light reflection,<br />
lower fuel consumption and temperatures, as well as lower<br />
lifecycle costs. CEMEX coordinated the environmental certification<br />
required for the project to obtain more than US$110<br />
million in financing from the North American <strong>Development</strong><br />
Bank and the Border Environment Cooperation Commission.<br />
9<br />
—
10 —<br />
ENHANCE our<br />
carbon STRATEGY<br />
20.3%<br />
20.5%<br />
To reduce the overall carbon footprint of our operations, we have<br />
long been engaged in a multi-pronged approach, chiefly by:<br />
n replacing traditional fossil fuels with lower-emission alternatives<br />
n reducing the clinker content in cement<br />
n increasing our use of renewable electricity<br />
n exploring new carbon-reduction technologies and policies<br />
uSInG alteRnatIve FuelS tO ReduCe emISSIOnS<br />
By replacing traditional fossil fuels with alternative fuels that are less CO2<br />
intensive or that recover energy from waste, we are measurably reducing<br />
both our CO2 emissions and our fuel costs. We have quadrupled our<br />
use of alternative fuels since 2005. In <strong>2010</strong> alone, the share of alternative<br />
fuels in our total fuel mix reached 20.3% compared to 16.4% in 2009.<br />
Cement kilns are ideal for safely disposing of—and capturing the<br />
recoverable energy in—waste materials, while avoiding landfilling. To<br />
ensure the environmentally and socially responsible use of alternative<br />
fuels in our kilns, CEMEX has established corporate guidelines<br />
that reflect best practices. We also engage with our communities to<br />
address their concerns and explain how the use of cement kilns for<br />
waste disposal is an environmentally friendly solution. We further<br />
meet with regulators to ensure that our use of alternative fuels is fully<br />
compliant with all applicable policies and regulations.<br />
alteRnatIve FuelS SubStItutIOn Rate<br />
percentage<br />
yeaR<br />
06<br />
07<br />
08<br />
09<br />
10<br />
15<br />
6.6<br />
7.6<br />
10.3<br />
alternative fuels<br />
substitution rate<br />
reduction of net Co2 specific<br />
emissions, compared to our<br />
1990 baseline<br />
16.4<br />
20.3<br />
We have established a new 2015<br />
target at 35% to reflect the ambitious<br />
program we have in place in<br />
all our worldwide operations.<br />
taRGet<br />
35.0<br />
ReduCInG OuR ClInKeR FaCtOR tO Cut emISSIOnS<br />
We continue our efforts to reduce CO2 emissions by replacing clinker<br />
with alternative cementitious materials such as fly ash, a by-product<br />
of coal-fired power stations, blast furnace slag, a by-product of the<br />
steel industry, and naturally occurring pozzolanic materials. In 1990,<br />
clinker comprised 84% of our cement; by <strong>2010</strong>, we had reduced the<br />
clinker content of our cement to 76%.<br />
InCReaSInG ReneWable eleCtRICIty uSe<br />
CEMEX is committed to securing renewable electricity sources.<br />
About 25% of the total electricity consumed by our Mexican cement<br />
operations comes from EURUS, a 250-megawatt wind farm located<br />
in Oaxaca, Mexico, developed jointly by CEMEX and ACCIONA.<br />
Additionally, our cement plant in Panama consumes only electricity<br />
sourced from hydropower. Moreover, in Rüdersdorf, Germany, a<br />
waste-to-energy plant was built for purpose of providing electricity<br />
to our neighboring cement plant.<br />
eXPlORInG neW CaRbOn ReduCtIOn OPtIOnS and POlICIeS<br />
In 2009, the US Department of Energy’s National Energy Technology<br />
Laboratory granted CEMEX funding to conduct groundwork for<br />
the development and demonstration of a commercial-scale carbon<br />
capture and storage (CCS) project at CEMEX’s Odessa cement plant<br />
in Texas. This study, completed in <strong>2010</strong>, concluded that commercial<br />
scale CCS in the cement industry is not yet ready for deployment and<br />
that significant research and development, public-private cooperation,<br />
and funding, as well as policy changes, will be required for CCS<br />
to realize its potential.<br />
Additionally, CEMEX has successfully registered four Clean <strong>Development</strong><br />
Mechanism (CDM) projects, for a total reduction of 850,000<br />
tons of CO2 per year. Achieved in December <strong>2010</strong>, the latest United<br />
Nations Framework Convention on Climate Change approval is for a<br />
project at our Zapotiltic, Mexico, cement plant, where alternative fuels<br />
will be used to substitute petcoke. CEMEX has a pipeline of more<br />
than a dozen additional CDM projects under development.<br />
CEMEX is a leading participant in the following initiatives:<br />
n The WBCSD Cement Sustainability Initiative (CSI), where cement<br />
companies work to find solutions to the sustainability issues most<br />
important to the industry. CEMEX chairs its Communications and<br />
Concrete Task Forces.<br />
n “Getting the Numbers Right”, developed through the WBCSD’s CSI,<br />
provides verified data on the cement industry CO2 emissions.<br />
n The Steering Committee of the UN Caring for Climate Initiative,<br />
through which business leaders and government decision-makers<br />
discuss practical climate change solutions.<br />
n The Prince of Wales’s Corporate Leaders’ Group on Climate Change is<br />
a cross-sectorial group of business leaders participating at the highest<br />
levels of policy debate surrounding climate change.<br />
n The Carbon Disclosure Project is a voluntary initiative that requests<br />
annual information on climate change risk management and<br />
performance.
ImPlementInG a CuStOmIzed envIROnmental<br />
manaGement SyStem<br />
We are committed to responsible stewardship of the land we use<br />
and manage and to conduct our operations in a sustainable manner.<br />
Over the past year, a team of CEMEX professionals has worked<br />
to develop a customized Environmental Management System (EMS)<br />
that is compatible with ISO 14001. Pilot implementation of the new<br />
EMS will begin in 2011, with global rollout in 2012. The new EMS will<br />
set a standard approach for managing air quality, water use, waste<br />
management, environmental disturbances, environmental incidents,<br />
and biodiversity in order to:<br />
n ensure legal compliance<br />
n identify environmental issues and their impacts<br />
n establish objectives, targets, and corresponding action plans<br />
n ensure compliance with CEMEX’s standards and guidelines<br />
n improve performance and common reporting<br />
aCHIevInG aIR emISSIOnS taRGetS aHead OF SCHedule<br />
We have invested in equipment to reduce major emissions, identified<br />
current situation for minor emissions at cement kilns, developed<br />
guidelines for handling fuels and emissions, participated in industrybased<br />
initiatives, and reported emissions in accordance with the CSI<br />
protocol. By controlling and monitoring emissions, we have achieved<br />
significant reductions in dust, NOx and SOx emissions ahead of our<br />
2015 target date. In <strong>2010</strong>, we achieved a 16% reduction in dust<br />
emissions a 19% reduction in SOx emissions.<br />
a COmPReHenSIve aPPROaCH tO WateR manaGement<br />
In <strong>2010</strong>, we began a partnership with the International Union<br />
for Conservation of Nature to strengthen our approach to water<br />
issues and develop a corporate water strategy as well as the<br />
tools—operating standards and guidelines, measurement protocols<br />
and key indicators, best practices, and training materials—we<br />
need to implement the strategy. The first phase, to be completed<br />
in 2011, will:<br />
n more precisely assess CEMEX’s global water footprint<br />
n map operational sites against key water issues<br />
n analyze water trends and stakeholders’ expectations<br />
n explore our road in contributing to watershed management<br />
n identify highest priority issues and strategy to address them<br />
aCHIevInG SIGnIFICant ReduCtIOnS In WaSte dISPOSal<br />
Another growing global challenge is the safe and efficient disposal<br />
of society’s waste products. At CEMEX, we have adopted a manifold<br />
waste-reduction strategy based on the philosophy of monitor, minimize,<br />
reuse, and recycle. In <strong>2010</strong>, this strategy enabled us to reduce<br />
hazardous waste by 11% and non-hazardous waste by 9%, saving<br />
significant resources and money.<br />
(1) Category 1 incidents are defined as major uncontrolled spills or releases beyond site boundary<br />
in breach of internal control procedures that might result in legal action and threat to operating<br />
license. Part of this reduction is due to the reduction in the number of sites operating during<br />
<strong>2010</strong> as a result of temporary site closures and divestment from our Australia operations.<br />
excellence in<br />
ENviRONMENTAL &<br />
BiODivERSiTY<br />
management<br />
543<br />
85%<br />
sites were evaluated for their proximity<br />
to high biodiversity value areas<br />
of our active cement and aggregates sites<br />
have quarry rehabilitation plans in place<br />
StRIvInG tOWaRdS zeRO envIROnmental InCIdentS<br />
By combining technology and careful planning, we minimize disturbances<br />
such as noise, vibration, vehicular traffic, aesthetics, and<br />
fugitive dust. Our goal of zero environmental incidents is a priority<br />
throughout CEMEX—a responsibility that extends from our top management<br />
team to each individual operator. In <strong>2010</strong>, we reduced the<br />
number of Category 1 1 incidents to only 2, from 8 incidents in 2009.<br />
maKInG PROGReSS tOWaRdS OuR quaRRy ReHabIlItatIOn<br />
We are committed to implement quarry rehabilitation plans at all of<br />
our operating sites by 2015. At year-end <strong>2010</strong>, 85% of our sites had<br />
such plans in place. In addition, we continue to work with our industry<br />
peers in the CSI to establish Quarry Rehabilitation Guidelines and<br />
help raise the standard of rehabilitation projects.<br />
Prioritizing sites with high biodiversity value<br />
In <strong>2010</strong>, CEMEX and our partners at BirdLife International<br />
completed a multi-year scoping study on the biodiversity<br />
status of our worldwide operations. The Biodiversity Scoping<br />
Study prioritizes 543 cement and aggregates operations<br />
in terms of biodiversity sensitivity and opportunities, based<br />
on both their proximity to areas of importance for biodiversity<br />
and their current management practices. Among the<br />
practical outputs of the study are maps and databases that<br />
provide detailed information on the biodiversity characteristics<br />
of each operational site that will enhance site-level land<br />
management decision making. The scoping study provides<br />
the baseline analysis from which the strategy is to progressively<br />
implement biodiversity action plans (BAPs) for 131 sites<br />
that overlap with important biodiversity areas, starting with<br />
12 priority sites. Ultimately, CEMEX’s objective is for 100% of<br />
these 131 sites to have a BAP in place by 2015.<br />
11 —
12 —<br />
high priority to<br />
HEALTH and SAFETY<br />
19%<br />
40%<br />
decrease in employee lti<br />
frequency rate in <strong>2010</strong><br />
decrease in lost work days<br />
We are committed to making CEMEX a safer workplace and to supporting<br />
all aspects of the health and well-being of our employees,<br />
contractors, and third parties.<br />
a SyStematIC aPPROaCH tO manaGInG HealtH and SaFety<br />
As part of our continuous effort to strengthen line ownership and accountability<br />
for health and safety by line management, we developed the<br />
CEMEX Health and Safety Management System (HSMS) in <strong>2010</strong>. Aligned<br />
with OHSAS 18001, the HSMS clearly sets out the company’s expectations<br />
in terms of health and safety management and provides guidance and<br />
tools to help managers reduce risk in their operations through:<br />
n risk assessments<br />
n system audits and site inspections<br />
n health and safety training and development<br />
n performance monitoring and tracking<br />
n emergency preparedness<br />
n incident investigation<br />
n sharing of lessons learned and best practices<br />
HSmS manaGement SyStem FRameWORK<br />
The HSMS framework outlines<br />
CEMEX’s commitment to<br />
Health and Safety and<br />
the requirements of<br />
top management for<br />
the effective management<br />
of health<br />
and safety, as well as<br />
incident prevention.<br />
tHe 14 elementS OF tHe<br />
CemeX H&S manaGement<br />
SyStem FRameWORK<br />
Operation<br />
control<br />
Incident invest.<br />
& reporting<br />
prevention<br />
Emergency<br />
management<br />
Std. operating<br />
procedures<br />
Document<br />
control<br />
Audits, inspect.<br />
& continuous<br />
improvement<br />
Communication<br />
& consultation<br />
Leadership &<br />
People, training<br />
& behaviours<br />
1 2 3 4 5 6 7 8 9 10 11 12 13 14<br />
REVIEW<br />
accountability<br />
Health<br />
Risk<br />
management<br />
Regulation<br />
policies<br />
Driving<br />
safety<br />
Contractor<br />
Management<br />
P L A N N I N G IMPLEMENTATION & OPERATIONS CHECKING MANAGEMENT<br />
ImPROvInG SaFety tHROuGHOut OuR OPeRatIOnS<br />
CEMEX has steadily reduced on-site employee injuries and fatal<br />
incidents. In <strong>2010</strong>, there were two on-site employee fatalities and<br />
zero employee or contractor fatalities from working at height.<br />
However, we must significantly improve the safety of our transport<br />
activities and management of contract drivers. We deeply regret<br />
the deaths of 46 employees, contractors, and third parties in connection<br />
with CEMEX activities in <strong>2010</strong>.<br />
In <strong>2010</strong>, we had a lost-time injury (LTI) rate of 2.6 and lost the<br />
equivalent of approximately 15,600 work days. While this rate<br />
slightly exceeds our target for <strong>2010</strong> of 2.5, it marks a significant<br />
improvement over 2009. Thanks to this progress, fewer people<br />
were injured, their injuries were less severe, and they were able to<br />
return to work more quickly. In 2011, we will focus on improving<br />
reporting and investigation of all injuries and near misses to better<br />
identify the root and system causes of incidents that typically<br />
result in lost-time injuries.<br />
We aPPly ROOt-CauSe analySIS tO leaRn FROm InCIdentS<br />
Over the past two years, we have steadily improved our use of rootcause<br />
investigation tools and methodology to understand why incidents<br />
happen in our operations. In <strong>2010</strong>, root cause investigations<br />
involving line leadership and technical and safety specialists were<br />
completed for every fatal incident, and corrective and preventive action<br />
plans were implemented. To further improve our performance,<br />
we have developed a training program that will not only enable us<br />
to better understand underlying causes of safety incidents, but also<br />
identify aspects of our safety management system that we must<br />
strengthen to prevent future injuries.<br />
SaFety leadeRSHIP PROGRam<br />
Developed in 2009, LEGACY is our company’s in-house flagship<br />
safety leadership program designed to help us achieve our goal<br />
of zero incidents. When fully implemented, LEGACY will equip<br />
managers at all levels with the tools, skills, and behavioral standards<br />
required to lead safer, more efficient operations. In <strong>2010</strong>,<br />
we completed LEGACY training for 2,108 CEMEX supervisors and<br />
managers. Our goal is for everyone in a leadership role to complete<br />
the training by 2015.<br />
dRIvInG and COntRaCtOR SaFety<br />
In 2009, we led the CSI Driving Safety Working Group in its development<br />
of industry-wide standards to address driving risks and<br />
incidents and to measure progress in reducing incidents and injuries.<br />
In <strong>2010</strong>, we immediately began implementation by conducting a<br />
baseline gap analysis across all of the countries in which we operate<br />
to determine the level of compliance with the CSI Recommended<br />
Practices. On average, we achieved 64% compliance with the driving<br />
standards and 63% compliance with the contractor safety standards.<br />
Each country will now implement action plans to achieve 100%<br />
compliance by the end of 2015.
CEMEX Global Safety Awards showcase site excellence<br />
Since 2000, the annual CEMEX Global Safety Awards have recognized business units and country-level operations that have built and<br />
continually improved their safety culture to achieve superior safety performance. Businesses and countries are judged based on six<br />
criteria: safety performance and continual improvement, safety leadership, innovative practices to reduce risk, incident investigation,<br />
analysis, and follow-up and near-miss reporting.<br />
sECTOr BEsT saFETy PErFOrmaNCE mOsT ImPrOVED saFETy PErFOrmaNCE<br />
Cement Patarra Plant (Costa Rica) San Pedro de Macoris Plant (Dominican Republic)<br />
Chelm Plant (Poland)<br />
Ready Mix Concrete Country Concrete Operations (Ireland) Monterrey Concrete Plant (Mexico)<br />
Aggregates South Region (UK) Rhein-Main-Donau Region (Germany)<br />
Logistics Aggregates West and Southwest Region (UK) Colombia<br />
Ireland<br />
Other lines of business Terminals and Warehouses (Spain) Indianapolis Pipe Plant (USA)<br />
Country Awards Ireland Austria<br />
InveStInG In OCCuPatIOnal and PReventIve HealtH CaRe<br />
Our goal is to improve each employee’s health by offering beneficial occupational<br />
and preventive health programs and empowering all of our<br />
employees to improve their personal health by raising awareness, providing<br />
information, and offering assistance. Based on the work of our global<br />
health council and other stakeholder feedback, in 2008, we established<br />
the global Health Essentials initiative to address the 12 most important<br />
occupational and preventive health issues our people face every day. Additionally,<br />
all of our health programs—whether voluntary or required by<br />
local law—are designed according to four basic principles that we have<br />
integrated into our HSMS: information and promotion of health topics,<br />
vaccinations, timely diagnosis, and rehabilitation.<br />
HelPInG emPlOyeeS ReduCe and manaGe tHeIR StReSS<br />
CEMEX is applying 12 years of research on various aspects of stress<br />
to help employees reduce and manage their stress levels. We offer<br />
seminars, a stress-diagnosis tool, and an online course for stress<br />
management.<br />
54% employees participating in annual<br />
medical exams, a 23% increase from 2009<br />
2.5 absenteeism rate by general<br />
disease, a 52% reduction from 2009<br />
96% operations with a qualified<br />
health professional onsite or with access to<br />
an external health provider, unchanged<br />
from 2009<br />
13 —
14 —<br />
strengthen local<br />
COMMUNiTiES<br />
45,099<br />
97%<br />
families improved<br />
their homes through<br />
Patrimonio hoy in <strong>2010</strong><br />
of our operations have Community<br />
engagement Plans<br />
CEMEX’s operations are often an important part of local communities.<br />
We employ community members, work with local suppliers, and<br />
contribute to the community through tax payments, social investments,<br />
and on-the-ground programs. Our social-investment programs<br />
yield positive economic and environmental returns, promote<br />
citizenship, empower people, and help build a foundation for longterm<br />
well-being. Community relations are managed at the country<br />
level, which helps us to identify the communities near our operations,<br />
our impacts on them, and their needs; and then develop and<br />
implement effective, site-specific social programs. Approximately<br />
97% of our operations have Community Engagement Plans.<br />
PROmOtInG aCCeSS tO buIldInG mateRIalS and SeRvICeS<br />
One of the most important ways in which CEMEX helps to reduce<br />
global poverty is by providing low-income customers access to<br />
building materials and services. We do this by creating programs that<br />
align the values and commercial objectives of our business with the<br />
needs of the communities we serve—generating long-term benefits<br />
for all. In addition, we advocate policies and financing models that<br />
will enable countries around the world to adopt development plans<br />
based on our programs.<br />
Patrimonio Hoy: much more than a house. Since 1998, Patrimonio<br />
Hoy, our award-winning low-income housing program, has provided<br />
affordable building materials and services and US$169 million in microfinancing<br />
to more than 300,000 families in five countries to build<br />
or improve their homes. In <strong>2010</strong> alone, 45,099 families benefited<br />
from the program. Sixty percent of participants in Mexico say they<br />
would not have been able to build their home without the program.<br />
With more than 100 offices in Latin America, Patrimonio Hoy<br />
promotes local economic development and creates jobs for local<br />
masons, and in particular, it provides opportunities for meaningful<br />
work for women. Most Patrimonio Hoy “promoters”—the individuals<br />
who sell and administer the loans—are women, half of whom had<br />
no work experience prior to joining the program.<br />
ConstruApoyo: a model for disaster response and long-term relief.<br />
Begun in 2005 to provide disaster relief after Hurricanes Stan and<br />
Wilma in Mexico, this program has since been used in other government-subsidized<br />
housing and community infrastructure initiatives<br />
because it is both efficient and transparent. Governments identify<br />
beneficiaries and provide funds for the building or rebuilding efforts,<br />
which CEMEX distributes in the form of debit cards to purchase<br />
building materials at fixed prices. We make results available online<br />
in real time to government officials. By <strong>2010</strong>, approximately 28,000<br />
individuals benefited from ConstruApoyo.<br />
Lazos Familiares: building community institutions. Since 2005, this initiative<br />
has helped communities build and renovate public facilities such as<br />
health centers, hospitals, orphanages, and schools. CEMEX, participating<br />
clients, and distributors donate materials and building assistance. Working<br />
alongside individuals from the communities, employee volunteers<br />
help communities complete the work efficiently. To date, they have<br />
completed more than 45 projects, benefiting more than 33,600 people.<br />
Mejora tu Calle: facilitating community movement. This program<br />
helps communities and governments work together to pay for the<br />
concrete paving of streets and sidewalks. By combining community<br />
contributions with government funding, most projects are completed<br />
in just 70 weeks—much faster than the 10 years it often takes<br />
low-income neighborhoods to complete these projects.<br />
Centros Productivos de Autoempleo (CPA) pursuing do-it-yourself<br />
construction. CEMEX partners with municipal or state authorities,<br />
as well as NGOs and communities, to establish community centers<br />
where low-income families produce concrete blocks and other precast<br />
products; half of which they can use to build, repair, or expand<br />
their homes. Municipal or state governments purchase the other half<br />
for infrastructure development. The resulting proceeds are reinvested<br />
in the centers. In <strong>2010</strong>, we were able to expand this program to Colombia<br />
through a partnership with the Inter-American <strong>Development</strong><br />
Bank, which is providing 35% of the financing for the first 18 months.<br />
Participatants in concrete block production process in a CPA in Mexico
CEMEX honored at the World business and<br />
<strong>Development</strong> Awards<br />
In <strong>2010</strong>, the World Business and <strong>Development</strong> Awards—<br />
organized by the United Nations <strong>Development</strong> Program, the<br />
International Chamber of Commerce, and the International<br />
Business Leader Fund—recognized CEMEX for its contributions<br />
to achieving the Millennium <strong>Development</strong> Goals<br />
through programs that foster and facilitate development,<br />
including Centros Productivos de Autoempleo.<br />
SuPPORtInG eduCatIOn and tRaInInG OPPORtunItIeS<br />
In <strong>2010</strong>, in partnership with the Tecnológico de Monterrey, we completed<br />
the CEMEX-Tec Center for <strong>Sustainable</strong> Community <strong>Development</strong><br />
to promote collaboration between the public, private, and academic<br />
sectors in order to support innovative solutions to challenges in this<br />
field. In addition, several of CEMEX’s country operations granted scholarships<br />
and supported educational chairs at local universities in the areas<br />
of architecture, sustainable construction, and corporate responsibility.<br />
PROmOtInG SelF-emPlOyment and mICRObuSIneSSeS<br />
As part of our efforts to improve local communities and promote selfsufficiency,<br />
we provide resources and advice for motivated individuals<br />
to start locally based microbusinesses. For example, at the Community<br />
Center of our cement plant in Torreon, Mexico, 20 students enrolled in<br />
the sewing and dressmaking course have made and sold more than<br />
3,000 uniforms for workers at the cement plant. Now, they are beginning<br />
to produce uniforms for local schools, and have applied for a loan<br />
from a government-run development bank to formalize their business<br />
entity and continue their growth. Moreover, in Colombia, 80 women<br />
and men who have participated in our educational programs have<br />
become CEMEX suppliers, providing environmental and maintenance<br />
services, performing work at height and in pre-blasting preparations,<br />
and selling uniforms and industrial safety clothing.<br />
FOSteRInG lOCal envIROnmental aWaReneSS<br />
We invest in environmental awareness, conservation, biodiversity preservation,<br />
and reforestation. In <strong>2010</strong>, among other initiatives, we provided<br />
assistance to build an interactive learning facility on marine ecosystems<br />
in the Philippines; organized events in the UK, France, Latvia, Poland, and<br />
the US that promoted learning about bird species and their habitats;<br />
and we launched our first CEMEX-BirdLife photo competition among<br />
employees to honor the UN International Year of Biodiversity.<br />
enCOuRaGInG emPlOyeeS tO vOlunteeR In tHeIR<br />
COmmunItIeS<br />
In 41% of our operations, we have employee volunteering programs,<br />
and many of the social projects we support depend on their participation.<br />
For example, on Mexico’s “Day of the Tree,” we organize reforestation<br />
brigades in all of our operations nationwide that have greenhouses.<br />
In <strong>2010</strong>, employee volunteers and local community members<br />
planted more than 45,000 trees. Overall, employees in Mexico dedicated<br />
more than 22,000 hours of volunteer work during the year.<br />
CEMEX machinery removes pile of mud and stones from a community<br />
of family homes after Hurricane Alex<br />
Contributing to disaster relief<br />
Our disaster relief efforts provide emergency humanitarian aid<br />
and support long-term reconstruction efforts.<br />
After the January <strong>2010</strong> earthquake, we took immediate<br />
action to support our 115 Haitian employees, their families,<br />
and neighboring communities by donating approximately<br />
US$750,000 from company and employee contributions,<br />
using our vessel “Marianela” to deliver 90 tons of direct aid,<br />
and making heavy machinery available to assist relief teams.<br />
CEMEX has also started the construction of a housing project<br />
for our employees in the country who were left homeless.<br />
In Mexico, we provided recovery assistance to several communities<br />
in the wake of floods in Oaxaca and Veracruz; an<br />
earthquake in Baja California and Sonora; and Hurricane Alex<br />
in Nuevo Leon, Tamaulipas, and Coahuila. Following Hurricane<br />
Alex, we distributed 250 tons of emergency aid and<br />
provided heavy machinery to assist in cleanup efforts. CEMEX<br />
also established Centros Productivos de Autoempleo in 10<br />
municipalities and donated building materials, as well as<br />
equipment and training, to help residents repair and rebuild<br />
damaged homes. More than 7,000 individuals benefited from<br />
this assistance.<br />
Through the national program Colombia Humanitaria, CEMEX<br />
Colombia supported national and local governments and donated<br />
1,205 tons of cement, after severe flooding. In addition,<br />
192 employees collectively donated US$12,000.<br />
In Europe, CEMEX provided Hungary’s Central Disaster Recovery<br />
Office with machinery to help drain water and clear roads.<br />
CEMEX volunteers then donated their services to operate the<br />
equipment. CEMEX also offered special discount prices on all<br />
materials needed for recovery work. Furthermore, in Poland,<br />
CEMEX donated materials to reinforce the flood banks in the<br />
Dobrzykow area and a mobile plant to reinforce flood banks<br />
in Warsaw.<br />
15 —
16 —<br />
partnership with<br />
KEY stakeholders<br />
83%<br />
+600<br />
employee engagement level(1)<br />
initiatives implemented to improve<br />
employees work life and performance<br />
By building strong, long-term relationships with our key stakeholders,<br />
we increase our responsiveness to their needs and concerns.<br />
StRenGtHenInG emPlOyee enGaGement<br />
We ask for our colleagues’ feedback through mechanisms that<br />
include the CEMEX Survey, town hall meetings, global webcasts,<br />
and team briefings. Since 2006, we have conducted the CEMEX<br />
Employee Survey that measures the degree to which employees feel<br />
motivated by their job, supervisors, team, and commitment to stay<br />
with the company and contribute to its success. In <strong>2010</strong>, the Employee<br />
Survey showed an 83% employee engagement level. Guided<br />
by these results, we develop action plans and, in <strong>2010</strong>, 674 initiatives<br />
were implemented or are ongoing based on employee input.<br />
Employees receive equal opportunities at CEMEX<br />
As formalized in our Equal Opportunity Employment Policy, CEMEX<br />
hires, develops, and promotes all employees on an equal-opportunity<br />
basis. To encourage diverse candidates to apply for positions, CEMEX’s<br />
hiring procedures seek candidates from a variety of sources: promoting<br />
open positions to be publicly posted in our job posting site, employee<br />
referrals, local universities, job-search websites, and social media.<br />
As women comprise 13% of CEMEX’s workforce, we have implemented<br />
initiatives to encourage more women to join the company. Over<br />
30 nationalities are represented in senior management, and approximately<br />
60% of senior management positions at significant CEMEX<br />
operations are local hires. In <strong>2010</strong>, approximately 54% of CEMEX<br />
employees were members of an independent union or covered by a<br />
collective bargaining agreement.<br />
HelPInG all emPlOyeeS tO leaRn, GROW, and advanCe<br />
At CEMEX, we promote a culture of consistent high performance<br />
worldwide. To help our employees meet this standard, we provide<br />
them with work experiences, tools, and guidance that allow them to<br />
(1) Engagement level is calculated as an average of the answers to a set of questions. It could<br />
vary from 0-100%.<br />
improve their technical skills and interact effectively. CEMEX offers<br />
and is continually developing an array of instructor-led and online<br />
courses. In <strong>2010</strong>, we developed a Manager Training Program that<br />
focuses on providing basic management tools for collaboration; we<br />
will now offer it to executives at operations around the world. In<br />
addition, during <strong>2010</strong>, more than 350 employees received support to<br />
complete university courses and degrees.<br />
To complement our onsite training efforts, we have a state-of-theart<br />
online learning management system, CEMEX Learning, through<br />
which our employees can design and pursue their individual development<br />
plans. Through CEMEX Learning, over 700 courses are accessible<br />
and available to approximately 19,000 employees worldwide.<br />
CEMEX’s Talent Review is a dialogue-based employee-development<br />
process through which the employee’s performance and potential<br />
are assessed collectively by the employee’s direct supervisor<br />
and peers, as well as the area leader. Over 20% of our executives<br />
and employees have access to a formal online system to register<br />
performance evaluations, and 97% of these employees reported<br />
receiving feedback in <strong>2010</strong>. The remainder of our employees and<br />
operators also receive regular performance evaluations with their<br />
individual managers.<br />
total rewards to attract and help retain the best talent<br />
CEMEX’s reward package is intended to both motivate employees<br />
and recognize their performance. To ensure that our offerings are appropriate,<br />
we consider the total compensation provided by comparable<br />
companies, the labor markets in which a given CEMEX business<br />
unit competes for talent, and data compiled from independent, professional,<br />
third-party surveys. We always comply with local laws and<br />
provide additional health and insurance benefits in over 90% of our<br />
operations and additional pension benefits in 45% of our operations.<br />
Moreover, we are committed to paying the same wages to men and<br />
women who perform similar jobs at the same level of experience, as<br />
evidenced by our male-to-female salary ratio of 1.02—with seniority<br />
accounting for the slight difference.<br />
CEMEX offers employees flexible work arrangements as appropriate to<br />
their particular culture and business unit needs; 69% of our operations<br />
have work-life balance programs, including dependent care, child care,<br />
elderly care, sabbaticals, parental leave, or other flexible time benefits.<br />
OuR GlObal WORKFORCe<br />
At the end of <strong>2010</strong>, CEMEX had 46,533 employees and approximately<br />
14,000 contractors. These numbers reflect voluntary turnover of 6%<br />
and involuntary turnover of 9%. The decision to reduce headcount<br />
was difficult, but necessary to ensure our continued competitiveness.<br />
All restructuring efforts were performed in accordance with<br />
local employment laws and applicable employment agreements.<br />
When significant operational changes required a notice period, we<br />
complied with local employment laws and collective agreements<br />
and provided an average of 30 days’ notice.
Our global workforce<br />
bReaKdOWn by level<br />
percentage<br />
59<br />
l <strong>EXECUTIVE</strong> l NON-<strong>EXECUTIVE</strong> l OPERATIONAL<br />
FOCuSInG On CuStOmeR needS<br />
84%<br />
Loyalty happens by design, not by chance. That’s why we intensely<br />
focus on every customer—whether a construction giant building a<br />
skyscraper or an individual building his family’s first home. From new<br />
value-added cement and ready-mix products, to financial mechanisms<br />
that enable government to build infrastructure, to partnerships<br />
with developers to produce low-income housing, we work<br />
closely with our customers to identify and implement effective ways<br />
to create more value for them. We also use customer surveys, including<br />
end-of-project satisfaction surveys, and ongoing dialogue to gain<br />
a clear understanding of our customers’ needs and preferences. In<br />
<strong>2010</strong>, 84% of the countries in which we operate regularly conducted<br />
customer-satisfaction surveys, up from 78% in 2009.<br />
FOSteRInG SuPPly CHaIn SuStaInabIlIty<br />
93%<br />
84%<br />
5<br />
36<br />
bReaKdOWn by aGe<br />
percentage<br />
of the countries in which we operate regularly<br />
conducted customer satisfaction surveys.<br />
of our purchases were made from<br />
locally and nationally based suppliers.<br />
of the countries in which we operate have<br />
processes to screen suppliers’ social and<br />
environmental practices.<br />
We believe that local sourcing is in and of itself a sustainable business<br />
practice: it creates jobs, which in turn stimulate local economies, while<br />
developing new skills among local workers. Whenever feasible, we support<br />
small and locally based suppliers everywhere we operate; in fact, in<br />
<strong>2010</strong>, 93% of our purchases were made from locally based suppliers.<br />
We recognize that our responsibility for sustainable business practices<br />
extends to the farthest reaches of our supply chain. By <strong>2010</strong>,<br />
84% of the countries in which we operate had processes to screen<br />
suppliers’ social and environmental practices. CEMEX is the only<br />
building materials company that participates in the United Nations<br />
Global Compact (UNGC) Advisory Group on Supply Chain Sustain-<br />
27<br />
22 19<br />
l UNDER 30 l 31-40<br />
l 41-50 l OVER 50<br />
32<br />
bReaKdOWn by SenIORIty<br />
percentage<br />
38<br />
14<br />
19<br />
l
18 —<br />
responsibility for<br />
sustainability at CEMEX<br />
We conduct our business with integrity and act as stewards not only<br />
of our shareholders’ assets, but also of the health and well-being of the<br />
environment, our employees, local communities, and society at large.<br />
Responsibility for sustainability at CEMEX starts at our Board of Directors<br />
and flows all the way through our company to our local operations.<br />
COmPany-WIde POlICIeS and InteRnal manaGement<br />
SyStem tO enSuRe COmPlIanCe<br />
We communicate our expectations and set global standards through<br />
company-wide policies, including our Code of Ethics and Business<br />
Conduct, Health and Safety, Environmental, Biodiversity, Anti-bribery,<br />
and Antitrust.<br />
Through ETHOS, our internal ethics management system, we raise<br />
awareness and integrate procedures to track compliance with policies<br />
as well as detect, manage, and reduce ethics and compliance<br />
risks. This company-wide effort includes training for individuals, employee<br />
perception surveys, communication campaigns on specific<br />
topics, ETHOS@Plaza (the company’s employee intranet), and the<br />
ETHOSline reporting channel.<br />
EVP Planning<br />
&Finance<br />
Senior Vice President<br />
Energy and<br />
Sustainability<br />
Corporate Director<br />
of Sustainability<br />
Corporate<br />
Sustainability<br />
Team<br />
SUSTAINABILITY<br />
AT CEMEX<br />
ENHANCE OUR MANAGE OUR<br />
VALUE CREATION FOOTPRINT<br />
ENGAGE OUR<br />
STAKEHOLDERS<br />
Board of<br />
Directors<br />
Chairman & CEO<br />
MANAGEMENT TEAM<br />
Sustainability<br />
Committee<br />
Sustainability<br />
Model<br />
<strong>Report</strong>s of violations of our Code of Ethics and Business Conduct or<br />
policies can be made through ETHOSline or directly to the Audit Committee,<br />
Global Ethics Committee, Legal Department, local Ethics Committee,<br />
local Human Resources Department, or immediate supervisors.<br />
PublIC POlICIeS aCtIvItIeS<br />
CEMEX actively follows public policy developments in many of the<br />
countries and regions in which it operates, and advocates in support<br />
of its business and sustainability priorities. Current priorities include:<br />
environmental protection, climate change, carbon markets, sustainable<br />
construction, economic policies, and financing models that<br />
encourage investment in sustainable infrastructure.<br />
In <strong>2010</strong> we published six position papers, all of which are available<br />
on our website, that explain CEMEX’s position on: Climate Change,<br />
Alternative Fuels, Market Mechanisms for Mitigating Climate Change,<br />
Carbon Capture and Storage, Environmental Management and Biodiversity,<br />
and <strong>Sustainable</strong> Construction.<br />
Learn more about our company policies and position papers at<br />
www.cemex.com/sustainability<br />
Audit Committee<br />
Corporate Practices<br />
Committee<br />
Finance Committee<br />
EVP Administration President EMEAA President Americas<br />
Regional and<br />
Country Presidents<br />
Americas and EMEAA<br />
Sustainability Coordinators<br />
Sustainability Country<br />
Operations
Our commitment to sustainability is reflected in the various awards<br />
that we have received around the world, including the following in<br />
<strong>2010</strong>:<br />
World business and <strong>Development</strong> Awards recognized CEMEX<br />
for its contributions to achieving the Millennium <strong>Development</strong> Goals<br />
through programs that foster and facilitate development, including<br />
Centros Productivos de Autoempleo.<br />
forrester Groundswell Award in Management–Collaboration<br />
System category recognized CEMEX for its Shift platform. Shift uses<br />
social media—social networks, wikis, discussion groups, and other<br />
communications tools—to enable meaningful collaboration among<br />
employees around the world through the sharing of innovative ideas<br />
and best practices.<br />
big tick Award from the Business in the Community (BITC) was<br />
granted to CEMEX for its Patrimonio Hoy Program in Mexico and<br />
Latin America.<br />
<strong>Sustainable</strong> <strong>Development</strong> Award was granted to CEMEX in<br />
France for two of its quarries by the National Union of Aggregate<br />
Producers (UNPG)<br />
UnICEM Environmental Award recognized CEMEX in France for<br />
its quarry rehabilitation efforts by L’Union Nationale des Industries de<br />
Carrières et Matériaux de Construction (UNICEM)<br />
Health & Safety Award for zero accidents at four of CEMEX in<br />
Germany’s operations granted by the German Association of Cement<br />
Industry (VDZ)<br />
Sustainability Index Silver Award to CEMEX in Latvia granted by<br />
the Employers Confederation and Free Trade Union Association<br />
ClARES for CSR recognizing CEMEX’s CSR programs in Mexico was<br />
granted by Universidad Anáhuac<br />
AWARDS and<br />
recognitions<br />
best CSR Practices for CEMEX’s Centros Productivos de Autoempleo<br />
Centro Mexicano para la Filantropía<br />
best Safety Award and Zero lost time Accident Award to<br />
CEMEX in the Philippines by the Philippine Mine Safety & Environment<br />
Association<br />
Award for innovative application of self-compacting concrete<br />
was granted to CEMEX in Poland by the Association of Readymix<br />
Concrete Producers<br />
Economic Contribution to Society Award to CEMEX in Spain by<br />
the European Aggregates Association<br />
Environmental Defense Award for CEMEX in Spain’s commitment<br />
to the environment by the ADM Business School<br />
International Safety Award for risk assessments and safety<br />
systems at all CEMEX sites in the UK granted by the British Safety<br />
Council<br />
RoSPA Occupational Health & Safety Awards recognition for 12<br />
CEMEX operations in the UK, granted by the Royal Society for the<br />
Protection of Accidents (RoSPA)<br />
William W. Howard C.E.O. Award for environmental stewardship<br />
to CEMEX in the USA by the Wildlife Habitat Council (WHC)<br />
EnERGY StAR® Partner of the Year awarded to CEMEX in the USA<br />
and ENERGY STAR® rating awarded to three plants in United States<br />
for superior energy performance by the United States Environmental<br />
Protection Agency (EPA)<br />
Cement Industry Energy & Environmental Awards recognized<br />
two CEMEX’s plants in the United States by the Portland Cement Association<br />
and Cement Americas<br />
To see a full list of awards received by CEMEX in <strong>2010</strong>, as<br />
well as in previous years, please visit our Awards section in<br />
www.cemex.com/sustainability
we welcome your feedback on our sustainability<br />
reporting and performance.<br />
Please send your comments and suggestions to<br />
sd@cemex.com, or write to us at<br />
CeMeX, s.A.b. de C.V.<br />
Corporate Communications and Public Affairs<br />
Av. ricardo Margáin Zozaya 325<br />
san Pedro garza garcía, nl<br />
CP 66265 Mexico<br />
tel: +52 (81) 8888-8888<br />
www.cemex.com<br />
Please consider the environment before printing all or part of this report.<br />
To conserve resources, we neither printed this report nor the annual report.